Australia’s robust economic recovery, which has merited an upgrade to a “stable” footing from ratings agency S&P Global, has been matched by enthusiastic bets on interest rate hikes, putting the bond market years ahead of the Reserve Bank’s guidance.

As the Reserve Bank of Australia’s July meeting approaches, when the central bank will review its quantitative easing program, markets are pricing in a much more optimistic view on economic growth by indicating that the cash rate is set to lift as soon as late next year.